Were you unable to attend Transform 2022? Check out all of the summit sessions in our on-demand library now! Watch here.
Software titan Microsoft beat Wall Street expectations with record second quarter revenues of $20.9 billion, a 5 percent increase from the same quarter last year.
“We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services,” said Microsoft CEO Steve Ballmer, in a statement. “Coming out of the Consumer Electronics Show, we’re seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012.”
For Q2 2012, Microsoft’s operating income was $7.99 billion compared to $8.17 billion in the year-before quarter. Net income was virtually unchanged at $6.62 billion versus $6.63 billion in the year-before quarter. Diluted earnings per share amounted to $.78 per share against $.77 per share a year ago.
MetaBeat will bring together thought leaders to give guidance on how metaverse technology will transform the way all industries communicate and do business on October 4 in San Francisco, CA.
The company barely beat Wall Street’s revenue estimates, as some analysts were expecting earnings of $.76 per share. Microsoft beat that by two pennies per share.
Microsoft’s Business Division had an especially strong quarter with $6.28 billion in revenue, a 3 percent increase from the prior-year period. The company was fueled by sales of Microsoft Office 2010 licences, of which it has sold about 200 million since its launch 18 month ago. Revenue generated from SharePoint and Exchange also grew by 10 percent (or more) versus the year-before quarter.
On top of that strong business-focused performance, Microsoft’s Server & Tools category posted $4.77 billion in second quarter revenue, an 11% increase from a year ago.
“We saw strong demand for our business products and services, despite the soft PC market and continuing economic uncertainty in key parts of the world,” said Peter Klein, chief financial officer at Microsoft, in a statement. “We delivered record earnings per share by continuing to manage our costs while investing for future growth.”
The company’s only major drop in revenues by division appeared in its Windows/Windows Live Division with revenue of $4.74 billion, a 6 percent decline from the year-before period. The Online Services Division reported revenue of $784 million, a 10 percent increase from the year before.
Finally, Microsoft’s Entertainment & Devices Division posted revenue of $4.24 billion, an increase of 15 percent from the year before. That highlights the success of its Xbox 360 game console and the motion-controlled Kinect sensor. Microsoft has sold 66 million Xbox 360 consoles and 18 million Kinect sensors to date. And the Xbox Live service now has 40 million members, a massive increase of 33 percent from the prior-year period.
VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Discover our Briefings.